Latest market data

Stock search

Most of the time, an entrepreneur’s efforts are focused on
finding clients -- but then there’s that one client who warrants
being let go. You know the signs: Every time you interact with
him or her, you feel irritated. Or perhaps it’s just a simple
case of your being tired of dealing with chronic late
payments.

Once you’ve decided that you absolutely want to let the problem
client go, the question becomes how to do so. Releasing a
client takes finesse, if you want to avoid hassles such as bad
reviews or negative talk within your industry. Here’s what you
need to know about the right way to let go of a client:

It’s always easier to release a relationship when all parties do
so cleanly. The client will be more irritated if you simply cut
ties without any warning, leaving him or her to find another
person to finish the job. There are two times when it’s not worth
it to complete a contract -- if the client isn’t paying on time
or treats you or your employees disrespectfully.

Otherwise, do what you can to honor all aspects of contracts.

Unless your primary mode of communication with this client has
always been via email, conversations are always best done in live
speech (no matter how awkward that might feel). Suggest a phone
call with the client to discuss “final project details” and
arrange a specific time. This conversation is best held when all
aspects of the project are complete or nearly so.

When a conversation feels awkward, preparing what you want to say
beforehand keeps you focused and reduces anxiety. The script
should contain three parts: first, any positives that could be
acknowledged; second, the news that you won’t be working together
moving forward; third, referrals to other providers who might be
a good match for the client.

Here's a sample:

“I wanted to say what an honor it was that you chose our firm for
this project. I know that you had several other options to
consider, and when we learned that you wanted to work with us, we
were beyond excited. As you know, our most recent project
recently ended and we’ve decided that we’re not going to renew
working together, at this time. However, I know that you’ve got a
lot of work in the pipeline and so I wanted to see if you’d like
me to put you in touch with ABC Other Firm. I highly recommend
its services.”

This script could be easily modified for those who have solo
practitioner firms businesses or who frequently work with
vendors or client-services representatives.

The client's representative is likely to press for details when
he or she hears that you’re severing the relationship. Some say
that honesty is always the best policy, but take care. Brutal
honesty is rarely received well.

If the client's representative seems to be open to what you
may share, then go ahead and be direct, tempered with kindness.
Be careful not to phrase things as the client’s
fault. Instead phrase give the feedback as a business
decision: “I felt that when we talked about the direction this
project was going in, there was often a sharp difference of
opinion, and our firm feels we do our best work when we have more
creative control.”

If the client presses further for details, yet you know that he
or she isn’t likely to be open to your feedback, there’s little
point in being specific with your opinion that the client was
difficult to work with. Debating with a client about the validity
of your viewpoint just wastes time. In that case, keep it vague
yet respectful: “This project taught us a lot. It illuminated the
fact that our firm really wants to go in a different direction on
future projects, one where we’re able to leave more of our firm’s
individual mark on the client work.”

When this step is overlooked, it’s inevitable that with time,
you’ll find yourself in the same situation, again --
perhaps even with a customer who presents the exact
problem as before. So take the time now to yourself what
wasn’t working with this client relationship and pinpoint when
you first realized the relationship was problematic. Taking the
time to clarify means that next time you have a similar feeling
with a client, you can make a different choice.

When done right, releasing a client can turn out to be beneficial
for both parties. You benefit from releasing a customer who
wasn’t right for your business and the client gains so that
the company can work with someone who’s genuinely enthusiastic
about having this account. As uncomfortable as these
conversations can be, when you make the choice to release a
client with respect and kindness, you’re going to feel better as
you drop the baggage from your business.